The Integral Relationship Between Freight and the Economy
Dan England Chairman, C.R. England
Truck , 68.5%
Rail Carload, 13.5%
Pipeline, 10.3%
Water, 6.4%
Rail Intermodal, 1.2% Air, 0.1%
Distribution of Tonnage by Mode: 2012
Source: U.S. Freight Transportation Forecast to 2024
Growth in Tonnage Total Increase from 2012 to 2024
0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
2012 2024
Waterborne Rail Carload
Trucking
Rail Intermodal
Air
Pipeline
Source: U.S. Freight Transportation Forecast to 2024
$642.1
$57.1 $41.5 $12.2 $14.7 $28.0
$0
$100
$200
$300
$400
$500
$600
$700
Truck Rail Carload Pipeline Waterborne Rail Intermodal
Air
Revenue by Mode - 2012
Source: U.S. Freight Transportation Forecast to 2024
Billions
Truck 80.8%
Rail Carload 7.2%
Pipeline 5.2%
Water 1.5%
Rail Intermodal 1.8% Air
3.5%
Distribution of Revenue by Mode: 2012 vs 2024
Source: U.S. Freight Transportation Forecast to 2024
Truck 81.1%
Rail Carload 6.7%
Pipeline 4.3%
Water 1.4%
Rail Intermodal 2.5% Air
4.0%
2012 2024
Highway Funding is Severely Inadequate
$70 billion annual investment from all sources $133 billion needed to prevent problems from getting worse $756 billion shortfall by 2020, $3.25 trillion shortfall by 2040
Need to roughly double highway spending to begin to reduce congestion, address pavement and bridge deficiencies
Highway Trust Fund Current and Short-Term Situation
Since 2008 Congress has transferred $41 billion from the general fund to the HTF and an additional $12.6 billion is authorized for 2014 In FY2015 HTF obligations will exceed revenue 2015 shortfall options
Cut funding from $51 billion to $0 (the no action scenario) $14 billion from General Fund Raise fuel taxes by 10 cents per gallon Combination of those options
9
Thank You